Federal Reserve

Federal Reserve Announces First Interest Rate Target Hike Since 2006

Embedded in the move is even larger interest on reserves payout to banks.

|

CNBC's report on seemingly big news from the Federal Reserve today:

After seven years of the most accommodative monetary policy in U.S. history, the Fed on Wednesday, as widely expected, approved a quarter-point increase in its target funds rate. The new target will go from 0 percent to 0.25 percent to 0.25 percent to 0.5 percent. Most members expect the new rate to coalesce around 0.375 percent before the next hike, according to a chart showing individual member expectations.

The decision, given the official stamp of approval from the Federal Open Market Committee, marks the first increase since the panel pushed the key rate to 5.25 percent on June 29, 2006….

And how will they try to make sure the price hits this target?

The program will be ambitious, involving $2 trillion of securities that will be used in overnight trading to push the rate into the desired range. However, the FOMC statement said it will be some time before the Fed starts unwinding its mammoth $4.5 trillion balance sheet…. FOMC officials made it excessively clear in post-meeting documents that the pace of increases will be gradual and dependent on the quality of economic data…

In addition to raising the funds rate, the committee pushed the interest paid on excess reserves to 0.5 percent and put the rate on overnight reverse repo operations to 0.25 percent, both in conjunction with the sale of securities that will be needed to push the rate higher.

Some other commentary and news surrounding the Fed's action:

• Lu Wang at Bloomberg says we can expect to see a stock market that has been goosed for years by zero-rate politics start to gain volatility and lose value

• …However today on the news as I write, stock price measures rallied from 1 to 2 percent.

Reformed Broker wants us to keep our eye on things that might start to unravel as we move into a world where interest rates are higher, such as areas that have been issuing lots of new debt in the recent past.

• Gerald O'Driscoll, anticipating this move yesterday, notes the elite-giveaway aspect of the move

the Fed is already paying commercial banks over $6 billion in interest payments annually. That amounts to a fiscal transfer from taxpayers to bankers. Raising rates will only increase that transfer. As we approach a presidential election year, that is likely to become grist for political mills….

Free-market economists are in a policy conundrum. Most have long advocated higher interest rates.  ut the facilities through which that policy will now be effected have questionable validity…

All of the above is a consequence of the Fed's having implemented extraordinary monetary policy. That included shedding all liquid, short-term Treasury obligations in favor of loading up on risky and illiquid, long-term debt obligations. Critics argued the Fed would rue the day it did that. Now that day has arrived.

• And Barry Ritholtz at Bloomberg says these sort of day-by-day news bulletins from the Fed don't matter very much at all.

My blogging from September when the Fed declined to raise rates but warned they might later in the year, as they now have.

Jeffrey Hummel wrote a detailed feature for Reason last year on how the Federal Reserve's tactical choices since the 2008 downturn have changed the monetary policy game in a bad way.

Advertisement

NEXT: Anthony Fisher Talkin' Debate Fallout on Kennedy Tonight

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  1. Of course the market went up. This had to have been priced in already.

    1. Which of the last 54 rate-hike threats did it get priced in?

  2. Free-market economists are in a policy conundrum. Most have long advocated higher interest rates.

    Pardon my ignorance, but wouldn’t “free-market economists” rather have, you know, the market determine rates, and not advocate to have them raised (or lowered) by Top Men?

    1. What?

      Free market determination of interest rates can only be performed by a committee of experts. Politburo style. How much explanation does that need?

      1. Four letters will do.

        1. YMCA?

          TUCK?

          RAMS?

          MORE?

          Huh – stumped, I am….

            1. Damn, you’re old.

          1. LGBT. What is wrong with you bigots?

        2. SPQR?

        3. All right, you’ve beat me down. I can’t stand to see you guys suffering any more.

          4LWD

    2. Pardon my ignorance, but wouldn’t “free-market economists” rather have, you know, the market determine rates, and not advocate to have them raised (or lowered) by Top Men?

      I think by “free market economists” that make fed policy proposals, they mean the Chicago school types who masquerade, quite successfully, as representatives of free market economics.

    3. Yes, but in a system dominated by Top Men they’d prefer those top men make good decisions as opposed to bad ones.

      1. That’s true. In a tautological way. The want the right thing to happen. Everybody does.

        But that doesn’t have any bearing on whether they deserve the “Free Market” label. If you advocate that the rental price for money be determined in some manner other than the Free Market, then you aren’t a Free Market Economist(TM), at least on that question.

  3. The end is nigh. Or is that “beware those that say nih”?

  4. Ah, lovely timing. Disincentivize saving as hard as possible for years as I’m trying to save a down payment for my first house, then bring those mortgage rates up right before I finish.

    And then, I assume, bitch about why aren’t more millenials buying houses.

    (yes, I know I’ll still get a hell of a better rate than buyers of the past – I’m not complaining so much as laughing at the zemblanity.)

    1. I cannot believe this is the first time I’ve encountered the word zemblanity. Zemblanity is a perfect word.

  5. Ah yes, the inane joys of studying the comings and goings of a centrally planned and cartelized money supply. Will interest rates rise? Will they fall? Will they remain flat until the coming of Ragnarok? Only shamen experts can say for sure.

      1. All this expedition needs is a leader. And according to the bones, that leader is…you, Hugh.

        “Calm down, Hitler. You think Ron Howard just *wished* Willow was great? No…and yet it was.”

        1. Epi, can you guess in which finger lies the power to rule the world?

          1. (sniffs various fingers)

            This one.

        2. Is that you, Burglekutt?

          1. Shhhh, Hugh doesn’t like people knowing his real name.

              1. Some day, Hugh! Some day!

        3. You… you are my sun, my moon! My starlight sky!

          1. “I love you Sorsha? I don’t love her, she kicked me in the face!”

    1. The funny thing is, CNBC and its ilk are such cheerleaders for federal intervention into markets, it makes it hard for me to even read articles there any more.

  6. Soon, that $19 trillion national debt will really start to bite us in the ass hard.

    1. That’s why they’ve kept the rate at zero for so long, they’ve been kicking the can down the road. If they let the market set rates, that can might not go as far with each kick… It’s fairy tale money, but as long as everyone believes, we’re alright. If the world decides that good Ol’ Uncle Sam isn’t as reliable as he used to be, that can will become glued to the ground and much bigger. To extend a metaphor to the very maximum… Any money that isn’t actually an intrinsically valuable thing, like a gold coin, requires belief in the magic. Just close your eyes and keep saying,”I believe”. It’s what those guys in DC are doing. Sorta like Russian roulette with our wallets.

      1. Gold is not “intrinsically” valuable. There is no such thing as “intrinsic” value. All value is subjective. Gold-as-currency is no different from paper-as-currency. They are both arbitrary and subject to manipulation.

        Currency is a state of mind.

          1. Ok, call it “objective” value if that makes more sense to you. The point is it’s not “intrinsic” or “innate” to the thing being valued.

        1. Gold can’t be subject to manipulation by printing more. At least not at this point of human development.

          1. Gold can’t be subject to manipulation by printing more. At least not at this point of human development.

            DAMN IT.

            *Sweeps alchemy equipment off of desk into adjacent trash can*

            1. I left it open: at this point of human development.

              Maybe you’ll be the one!

          2. We haven’t even mined all of the gold on this planet, never mind the other ones. And having a fixed money supply has its own problems.

    2. Once interest on that debt starts going up, yes, yes it will.

      1. Then it gets interesting.

  7. Futzing with the interest rate served so well for the last, oh, seven years or more, futzing with it some more has to help, amirite?

    1. Are you saying you want the rate maintained at zero bound forever?

  8. What I like is how even supporters of the Fed hike admit that this interest rate rise wasn’t data dependent, but merely a signal to investors that everything is fine, nothing to see here in the economy.

    1. If a quarter basis point is a “hike”, I’ve gotta take a hike to the toilet to take a dump. *Pants heavily*

      1. That’s why it was so small.

        Yellen: How do we raise interest rates small enough to not hurt the fading economy, but signal to the country that we have confidence in the economy?

        Yellen aide: 25 basis points babydoll.

        Yellen: Oh you!

        1. The abuse they inflict on the language is almost as bad as the abuse they inflict on the economy.

  9. So Yellin stuck her greasy finger in the Zero Bound and didn’t like it?

  10. Jeffrey Hummel wrote a detailed feature for Reason last year on how the Federal Reserve’s tactical choices since the 2008 downturn have changed the monetary policy game in a bad way.

    Reason should get a full-time econ guy to write for them instead of hiring pinch-hitters. And I mean that in the most complimentary way possible.

    1. They might want to consider some people who are capable of honest evaluation for foreign policy too.

  11. Interest on debt making payments too big? Just print more. Jeesh people. What could go wrong?

  12. Can one of you economically educated types decipher this quote for me?

    The new target will go from 0 percent to 0.25 percent to 0.25 percent to 0.5 percent. Most members expect the new rate to coalesce around 0.375 percent

    1. My only question is that if the fed rate gets jacked by 0.375, what does that translate into for consumers?

      1. Your ARM is probably going to go up.

        1. I don’t have an ARM. I have a fixed rate at 4% in one loan. I guess I’m not going to get a lower one now. Also, looking into buying another home, I don’t actually live in that one, my daughter does. Now I’m worried about rates going up, shit. I think I’ll hold off, again. Also was going to buy a new car next year now that mine is nearly paid off, 5 more payments. Shit, maybe not.

          Then again, I don’t know what .375 translates into for consumers, I’m just sure that it’s more than .375.

          1. Well, of course I didn’t mean YOU… I should have said “one’s ARM” might go up. But it probably won’t go up by much. From where I sit, our economy is in full Japan mode, permanent flat performance with effective 0% interest rates for a decade. I don’t see any way out that doesn’t involve some yuppies getting hurt.

            1. Oh, yes, I understood that, I’m just rambling. What else is there to do when there’s no more Trump news.

              1. See what’s trending on Twitter? I think Reason has printed enough Econ news, time to go back to the Campus Twitter Sex/Scandal beat.

                1. I don’t do twitter or derpbook, ever.

        2. You know who else’s ARM went up ….

          1. Tommie Smith and John Carlos?

            1. Tommy Lee…

              Wait! That’s not his arm!

    2. The fed sets a target ‘range’. The previous target range (as of yesterday) was between 0 and 25 basis points.

      They’re now setting the range between .25 and .50- and they get there with some fancy and weird manipulation in the securities markets.

    3. For the Fed, voting to hike interest rates is the easy part. The tough work begins as U.S. central bank officials implement the right maneuvers to ensure rates go where they want.

      Essentially, the heavy lifting gets assigned to bond traders at the New York Fed who use a few tools to ensure that supply and demand work out so that the primary policy target, or funds rate, is within the range the Federal Open Market Committee expects.

      If things go as Wall Street expects, the Fed will be lifting the current funds rate target from 0 to 0.25 percent to 0.25 to 0.50 percent ? a number that the investors will see as a quarter-point hike, though the mechanics may not quite work out that way.

      Interest rate hike coming? What you need to know
      Specifically, the Fed will be using two tools: interest on excess reserves, or IOER, and reverse repurchase operations, or RRP. The former involves payments on the $2.3 trillion or so of excess reserves banks currently hold at the Fed, while the latter are short-term ? almost always overnight ? purchases of a security with the agreement to sell later at a higher price.

      http://www.cnbc.com/2015/12/15…..rates.html

      1. That’s not how it works. I’m pretty sure its more like this:

        On a cold December morning Granny Janet goes to the front window of the Eccles building. She takes down the old chalkboard that hangs by a chain. The faded lettering at the top announces “Today’s Special.” She pauses and looks at the number beneath it, trying to remember the last time it was changed. No matter – With the side of her chubby fist she easily rubs out the lopsided “0”. She finds a new piece of chalk in her apron pocket. In small, neat script she writes “.25.” She hears her oven timer ding. She hangs the chalkboard back on its chain and moves on to more important things. Her muffins are ready!

  13. Is this the LNL? This is lame.

    1. ’tis the season…

  14. I fear that all we have done is lit the Buttpig signal.

    1. His belove Es and Pee is flat for the year as is the DOW, so that’s why I don’t think we’ve seen to much of The Shrike ’round these parts. He’s probably on his boiler-room phone all day screaming “Sell, damnit, sell!”.

      Besides, he probably didn’t even win the set of steak knives this year.

  15. I for one, welcome our new cat overlords:

    Residents of Russian city want cat for mayor

    1. Ah, so that’s where the Libertarian Moment has gone. We’ll know we’re there when we’re all ruled by quadrupeds.

    2. If the Russians can defile a great American tradition they’re capable of anything…

      https://youtu.be/gyPKf5LmIT8?t=599

    3. Awesome. That’s way cooler than the little boy mayor in Minnesota http://www.nbcnews.com/news/ot…..6C10847184

  16. Anyone recommend a good macro econ for dummies series on the Interwebz? Its been a awhile since I sat through a class on this stuff… Thx!

    1. Coursera keeps reminding me I once signed up for a course I had every intention of undertaking…. then. But it’s free and I imagine they do macroecon.

  17. Holy shit. Seriously read this.

    http://www.dcclothesline.com/2…..of-incest/

    1. While accurate regarding practices, wholly inaccurate from a scientific perspective. Effects of consanguineous unions are minimal.

      1. Trim one generation yes. This is talking about over multiple generations. Two words; Spanish Hapsburgs.

        1. I once greeted a history major I spent a couple weeks unsuccessfully courting by asking “What’s the Hapsburgs?” She was having none of it, or me.

      2. Even a Muslim apologist site I read admitted that it doubled the rate of birth defects, and it increases chance of mental retardation, stillbirths, etc.

        1. Serial inbreeding yes. One-off thing: no.

          1. Yeah, but Muslims have been inbreeding for 1400 years. Muhammad did it with his cousin(s?), and he was the perfect man, so it’s often actively encouraged, and has been for centuries.

            1. Pretty sure the inbreeding precedes Mo. It’s a tribal thing, and decreasing as Islamic countries urbanize. More people = more selection = less inbreeding.

            2. As Cytotoxic notes – absolutely this is the case with serial breeding and no external genetic input (hybrid vigor).

    2. Well shit, dude, half of the people in Appalachia are inbred but they aren’t coming down to Balmer to blow shit up.

      1. Sure but it doesn’t help.

        1. Of course not. Just look at Prince Charles. Goofy looking jug eared retard.

    3. Those numbers are at odds with the ones on Wikipedia, so I’m pretty sure they are bullshit. The link on the linked page leads to a page that starts off with an acknowledgement that they don’t have all the facts they need. I’m not surprised at the exaggeration I just don’t even know why they did it. The real numbers are horrifying enough.

      Nonetheless, this is not something to get pants-shitty about. Iceland is infamously inbred. They have an app so locals can avoid dating relatives. I don’t see a lot of violence over there.

      1. Prof Steve Jones, one of Britain’s most eminent scientists, has warned that the level of inbreeding among the nation’s Muslims is endangering the health of future generations.

        He added: “Bradford is very inbred. There is a huge amount of cousins marrying each other there.” Research in Bradford has found that babies born to Pakistani women are twice as likely to die in their first year as babies born to white mothers, with genetic problems linked to inbreeding identified as a “significant” cause.
        Studies have found that within the city, more than 70 per cent of marriages are between relations, with more than half involving first cousins.
        Separate studies have found that while British Pakistanis make up three per cent of all births, they account for one in three British children born with genetic illnesses.

        1. The Hills of Bradford Have Eyes.

          Do Icelanders and other island peoples (often inbred) have this level of genetic illness?

        2. So the next generation will be blowing up school buses by huffing the exhaust pipe?

    4. Also the statement about how Christianity forbade inbreeding is at odds with how royalty in many Christian nations actually operated for eons.

      1. Obviously there are always exceptions to rules for royalty, and we know where that particular exception got them, don’t we?

        1. It got them a lot of bleeders and some other disorders. Not sure if it made them crazy.

    5. Seriously read this

      Will I believe what happens next!??

    6. How is having 16 toes not an advantage?!

  18. lol, I guess someone got a suitcase full of money!
    http://www.GoneAnon.tk

    1. Someone explain to anonbot the notion of digital fiduciary media.

      1. “..guess someone got a suitcase full of money Bitcoins!”?

      2. I kinda wish I had a real need for one of these things.

  19. Fucking shit coders. Man, games in this fucking place suck like juice turds. They are mostly retarded millennials who jack off to plastic people with ufo vaginas, brains, and swamps for buttholes. FUCKING worthless crap games are shit fests. Literal like what silly mass of infant armed brained parasitic understudy created this fucking nematodal sub-basement CRAP called Fallout 4.

    Is Bethesda a baby geek mill where tons of their girls fuck silly studs and then make all sorts of NON nimble people to create games for them?

    Because Fallout 4 is pure asshole lickery. I would eat the shit from Bethesda’s ass if it came with cocaine and asians… but I FUCKING paid for a few licensed travels into the world of these shitters.

    1. So, I love Piper…

      1. … and punky edgy cunt fucking fuck-you Piper can be ‘my slave’ like all the other strong characters ‘who become worthless living pennies’ in Fallout 4.

        I FUCKING LIKED PIPER BEING STRONG< BETHSEDA or whatever the FUCK you FUCKING GODDAMN NAME IS. Fucking ruined my game…

        I fucking hate modern games.. I fell in love with Piper and Bethseda killed her with my GODDAMN CHOICE TO MAKE HER FOLLOW ME YOU MOTHERFUCKING FUCKING MONKEY FUCKING WHORES…

        she was real for a moment and awesome and then she followed my commands and then I died… and Bethesda should suck my asshole

        1. Ok, give us a list of games you like.

          1. I loved Piper, hyp

            1. Umm, was she in a previous Fallout? Just remember, I’ve only played FO3, FNV (one of the greatest fucking games of all time), and now FO4 (not many hours yet).

              What’s your Steam ID, bro?

              1. well i would but because I do drugs I don’t trust all my babes

                1. That’s ok. We can always talk about gaming here.

    2. It’s not that bad, AC, calm down dude. The engine, which is easy to tell is derived from the Skyrim engine is actually brilliant, one of the smoothest and most immersive game engines of all times.

      1. one of the smoothest

        Try zooming with a sniper rifle in a moderately crowded open area.

        1. At what FPS?

          1. It usually runs at 45-60 for me but it’ll drop down to around 30 in open landscapes and 15 or lower when zooming. As far as I can tell, it’s CPU-bound due to using only one thread.

            1. I’ve found that aiming like that depends to a large extent on FPS. I like to game at higher resolutions, but I’ll drop down to 1080 if it gets me at least 75-90 FPS in first person shooter games. I’m getting around 80 FPS avg in Fallout 4 at 1080. I love the way it looks at 2560×1440 but at only 60 FPS or so, it’s a definite disadvantage in combat. For a real advantage in ranged combat you need 100+ FPS, but I’m such a graphics whore that I can’t turn down the graphics settings to get it. I’m not getting any CPU load at all. At 1080 with all the graphics settings maxed, I’m getting both of my GPUs near max in combat, but it’s very smooth. Game is pretty well optimized.

              1. Maybe I could hit you up for some build advice? I have a friend offering me a 970ti for free to get started, and I’m trying to build a midrange rig around it on the cheap.

                1. 970ti is a damn good card, especially for fee, lol. That’s a $400 card, minimum. Does that have 6G or RAM or only 4? Just curious. I have 2 970s running in SLI. I wish the hell I would have went for a 980ti instead, but that’s another story.

                  Get a decent gaming board (think ASUS or Gigabyte) with an i7 processor and load up on system RAM, at least 16G, RAM is cheap. Then get an SSD. I cannot stress the SSD part enough, it’s the best thing you can do outside of your high end GPU that you’re getting for free.

                  Then if you have an extra $500 or more lying around, get a gsync monitor.

                  1. The G-sync monitor is very cool. So is SSD.

                  2. 4GB, no SLI possible (afaik). Is the i7 worth the investment? I’m not expecting to run anything beyond FO4 or GTAV, and my standards are low. Not minimal, but low.

                    Although God help me I checked out a bunch of youtube reviews for a Phillips 40″ widescreen and I desperately wish I could afford the investment to run games on it. Just beautiful.

                    1. There’s a series of unlocked 4-core i5s that are specifically geared for gaming (I’ve got the i5-3570K in one computer and the i5-4690K in another; the current iteration with DDR4 support is the i5-6600K). I would recommend one of those over the i7, as it’ll save you $100 or more.

                    2. I would recommend one of those over the i7, as it’ll save you $100 or more.

                      You going to recommend one of those with a 970ti?

                    3. For a single one, yes. The i5-4690K has full 16-lane PCI-e bandwidth.

                    4. recently built a new rig with the i5 6600k, loving it so far.

                    5. recently built a new rig with the i5 6600k, loving it so far.

                      What are your other specs? Just curious, I’m sort of a nerd about this stuff.

                    6. 16x DDR4 ram
                      Asrock z170 mobo
                      750ti

                      128gb SSD for windows/everyday apps, 1tb hdd for the rest

                      I live in Japan, and the prices are kinda wonky here. ~10-15% more expensive for most stuff. RAM in particular is 80-100% more expensive (I ordered from the states, got double the ram for the same price, but had to wait 3 weeks staring at my 99% assembled tower longingly).

                      The 6600k is overkill for my needs, but it was shiny and I had to have it!

                    7. I live in Japan

                      You aren’t getting into JRPGs are you? I’ve noted that they’re re-releasing all of the FF series on PC as of late.

                    8. I never really played any of the JRPGs, so I don’t know too much about them.

                      Multiplayer games can be pretty frustrating because I generally have to choose between low ping and English speakers, so I’ve been getting more and more into deep single player games I can sink a lot of hours into (flight / sub sims of late)

                    9. Dude, if you live in the Tokyo area and want to link up with a couple other commenters here just let me know. We’re trying to set up a meeting next week.

                    10. I’m down in Nara now, but I’d love to meet up for drinks next time I’m up North.

                      Shoot me an email (pardon the measures to dodge email spambots)

                      “k”g”o”o”d”s” at gmail dotcom.

                      Cheers,
                      Kieran

                    11. Forget about the SLI, I’m a long time fan and I can tell you why forget about it and it’s part of the reason I wish I would have bought a 980ti for the same price as my 2 970s, but it’s a long story and I won’t bore you with the details, just trust me, take your 970ti and forget about SLI.

                      Yes, the i7 is worth the investment. An i5 or less will create a huge disadvantage for you if you want to game. Don’t trust me on this, google it and do some research, you will see what I mean. Your very good GPU is nearly worthless without an i7. It’s like trying to put a rocket engine in a golf cart, or something like that.

                      The most important thing about your monitor is the framerate it’s capable of. If you can’t spring for gsync, just get a monitor that can do 144hz, or at least 120. Don’t worry about how pretty a monitor looks, that won’t matter when you start getting screen tearing and other such horrible abominations.

                      Dude, you got a top end GPU for free. Take advantage of it. i7, as much system RAM as you can afford, and SSD. And forget about SLI, don’t even think about it, don’t complicate your life, (:

                      God how I wish someone would have told me some of this stuff before I wasted so much money and time trying to create a gaming rig that I was totally disappointed with.

                    12. Yes, the i7 is worth the investment. An i5 or less will create a huge disadvantage for you if you want to game. Don’t trust me on this, google it and do some research, you will see what I mean.

                      If you’re not doing SLI and you’re not running a dedicated RAID controller or some weird shit, the i7 doesn’t offer much over the i5. Those extra pins don’t do much if you’ve only got one x16 PCI-e card. The extra cores and hyper-threading support are also not very useful for gaming workloads. Yes, you will see a 10% or so performance improvement but IMO it’s not worth a 30%+ difference in cost.

                    13. I don’t know anyone who’s investing in high end GPUs and using those with an i5. A good i7 is not that expensive now.

                    14. Eh, he’s got two opinions and a starting point to do more research.

                    15. Yep, as far as CPU is concerned. He’s got a great start with the 970ti. Other than that, I’d recommend at least 16G RAM ( if you keep counters on screen during gaming you’ll see a lot of new games using 8 or 12G or RAM. And the SSD is just priceless, not only for gaming. I’ll never buy another mechanical drive.

          2. “At what FPS?”

            See also: Casual, Filthy.,..

          1. I’ve used VATS for sniping mid-range targets in FO4 but nothing beats a well placed headshot manually aimed on a target you couldn’t even seen without zooming. I use VATS a lot more when playing in close quarters and when using the Xbox controller (vs. keyboard and mouse where aiming precisely is much easier).

            1. I use VATS a lot more when playing in close quarters

              This

          2. I’m assuming he meant without VATS, since he’s talking about aiming.

      2. Are you kidding? The engine is older than God. They should have replaced but they didn’t and it shows. It is creaking.

        1. It’s quite clear they’ve been using the same engine in Oblivion and all subsequent games. But it obviously has had a lot of tweaks, with Fallout 4 clearly being built upon the improvements done for Skyrim. There are definitely more cutting-edge engines out there, though.

          1. Gamebryo NI/CK is also one of the most mod friendly platforms out there, and the modern incarnation relatively stable compared to previous versions..

            1. Not being “cutting-edge” doesn’t mean there’s anything wrong with it. Bethesda makes money hand-over-fist and as you say they’ve optimized things besides raw graphical power.

              1. Anything wrong with it from a business perspective, that is.

                1. And.. for the modding community (arguably their bread and butter).. they don’t “move the food dish”.. Using the G.E.C.K from Morrowind/Oblivion – Skyrim (without the script extenders) is still fairly consistent, and the transition between them for the modder is relatively smooth. Papyrus being the major change, but the scripting is still fairly similar.. Just my $.02

                  1. As long as we’re going to talk games and FO4, I don’t have time to play it. Too busy playing Rebel Galaxy, the best game out today. The soundtrack alone is priceless.

                    1. *Adds Hyperion’s name to the shit-list*

                    2. You don’t like Rebel Galaxy?

                    3. I also highly recommend DOS enhanced edition and Elite Dangerous. More reasons to hate me!

                    4. “You don’t like Rebel Galaxy?”

                      I’ve never played it, so I’ am of no opinion on it.

                      “As long as we’re going to talk games and FO4, I don’t have time to play it.”

                      Inexcusable.. choke yourself..

          2. The Oblivion engine to me, has virtually no resemblance to FO4. To Skyrim engine, definitely, which is why I like it so much. Best fucking smooth stealth movement ever. For a ranged weapon lover, that’s all good.

  20. I loved Piper until the MOTHERFUCKING BETHESDA GAVE me shit power to ruin her spirit. FUCK lame modern coders. FUCK YOU ALL. NONE of you can create great shit. I need to go into a room and make streams of rainbows and rivers of scattered fucking lightnings.

    1. So, what are playin AC? I have to put this into perspective. What is good?

      1. HYP, this bro is A FO3 GOTY playa…

        i love hyp. tho 2 be sho

        1. FO3 is ok. It sucks though compared to NV.

          1. Bruh. NV was tacked on. Capitol Wastelands 4 LYFE

            1. NV is everything that FO3 could’ve been, if Obsidian was at the helm at the time.. TTW was meant to rectify that little oversight..

  21. I play all that shit. I am a steam thing. rolling about that universe of freud bodies and bulbous genetics and shit.
    and I put the lights on that glitter and gleam and swallow the goddamn world into my fucking face hole and fall back like a fat baby lion with the ballsack of the savanna in its goddamn mouth and so on…

    ALL game creators make games about US! We, I, You, and that strange disembodied marketed bullshit of their over-price dumb shit imagination…

    NO game creators make games about RELATIONSHIPS that US! We, I, You, and my ghosts have time to GROW and FALL into and DEVELOP… like that sad synth on that odd Bridge in Fallout 4 world that I felt so sorry for and I actually thought for that single second and NOT beyond that Bethesda for once created something cool but then I played for a while and realized Bethesda is like the fucking rest of them… worthless fucking bullshit asshole grease a lonely mountain man bought one lonely night after traveling for weeks in the Alaskan wilderness. His wrinkly ass had gotten sticky and messy and so he needed some slippery island grease for his and he found a store on the edge of a lake and purchase said slather called fuck you Bethesda but our old mountain man didn’t care and his fingers lapped that slithery slathery sluppin all up in his old wrinkling button and he fell back on the lightning and fingerings of the moutains. fuck bethesda

    1. Just name some games that you think are good.

      1. fucking hyp. Man, are you serious? I love fucking orig DD, System shock, deus ex, and shit

        1. Meh, the camera and FOV on those games give me a headache. The first really great game that got me into gaming is the first Gothic.

        2. SHODAN / Denton 2016

        3. I am playing through SS2 right now and it is fucking awesome. Not perfect, but I would find God if necessary to get a remake on the Crysis engine. Or even the Source one.

            1. Well you know what you are? WRONG. Or some crazy double-liar.

              http://www.polygon.com/2015/11…..t-look-art

              1. Man, I’m still waiting for my Homeworld remake. It’s out there, I just have nothing to run it on.

                1. It’s been done, you know. And there’s a new Homeworld. It was just released today. Unfortunately, it’s a land based RTS, no space at all.

              2. I’m happy to see that some of the Looking Glass guys are at the helm of that project.

                Now if only they could reacquire the IP to the Thief series and un-fuck it.

  22. Well last year of of the lion king presidency. Might as well start the necessary pain so it hits when gop takes over. It is necessary but should have started years ago.

  23. So, agile is about to teach a lesson on how to create non shit games even tho shit games make billions. For the new age of all the shimmering brains… and crap. I will post this sentence or two and tuck my fucking kids in bed and be back and hopefully billion dollar companies who sell to millions of desperate minds will grow from this.. but i doubt it….
    give me a minute.

    1. Well, let’s hear it bro. We can crowdfund your game. I’m always looking at new games, rarely interested in any of them. I’m sort of burnt out.

    2. Create characters that resist the will of the player EMOTIONALLY. it is easy to make battle bots. Far harder to make players connect EMOTIONALLY with binary masses with pretty faces. But, agile cyborg falls in love with digital faces and when she is too moldable, too this click and that click, and agile is in this world because he does far too many mushrooms and has broken many a fucking reality in FUCKING REALITY outside of gaming… make the Piper or Valentine get pissed off and leave coder. Make me after USING them WORK to earn their continued respect OR… love.

      I love Piper in Diamond City she reminds me of ENB.

      1. ENB play FO4, Piper is you with the lame Bethesda bullshit…. ENB pounding at the gates of fucking bullshit…. I love Enb… I love reason lightnings filled with charges of all these pudding pops bursting with galazies also… like a million hearts blurting into eternal musings a thousand space miles of finger presses this place will provide new worlds because Reason writers and commenters are the best minds on the GODDAMN PLANET!!!!!!

      2. I’m just heading out to Diamond City, bro. I haven’t been there yet, on my way. When I get there, I will check it out and we will talk about this again.

    3. So, did you tuck your kids in bed or did you put a pet in the dishwasher? Reading over the addled prose that follows you have definitely been partaking of too-old takeout or too-colorful mushrooms from the neighbors field. Might want to check that you actually did those things you thought you did. 😉

  24. The fact that that overrated lame POS BioShock aka Most Overrated Game Ever is actually considered the ‘spiritual successor’ to SS2 says everything that has gone wrong about gaming the last decade and a half. 2015 was such shit year for gaming it was even worse than the last several.

    1. fucking FUCK ing SHIT ethos spheres of the living and playing mix like Mom/s pudding rum cake.

      Bros, under the day in the early earth… after a night and previous day of relocating our minds I guess rivers we drowned in the night before are parks with benches and strollers and tall buildings… and I still believe in gigantic elves

    2. Yeah, sure. Witcher 3, Pillars of Eternity, GTA5 for PC, Bloodborne, MGS V, Forza 6, Fallout 4, Battlefront, Tomb Raider, StarCraft, Xenoblade Chronicles X, and a bunch of good indie games.

      What an awful year.

      1. And Just Cause 3! That looks hella fun.

      2. Battlefront was an absolute disgrace. Class EA: take a great franchise and convert it into shit. FO4…it just doesn’t look or sound like it’s all that great. From what I’ve heard, SC2 is just bad. The writing sounds awful. Regarding the others you may have a point.

    1. doesn’t want to waste money on software

      Bullshit – he just wanted click-bait.

  25. under the light of the flat lamp
    when the sentences fall into in the cracks
    vertical css voices call for demands in gray
    and behind the white wall the eyes dripping dreams could
    only imagine the browser pretends it is not there but
    it is the traveling friends greatest non existential
    society filled with not a single person that will make
    the searcher an actual sandwich
    so the light rises up and the sunrise of the thread
    over the grey horizons call for the nasty dreams
    of valleys among the dangerous glances
    of my old minds in the gold scratches
    wrecking galactic moons with the chair
    of the magic barber

  26. I love my reason monsters I love my reason writers
    I love reason I also love my trips I love to fall into the basin of unending dreams
    man I love to die into the places where parks live for falling leaves
    I love to transition onto the fucking bluehole of song and brain rivers sweeping our lives along into the fucking little soap
    dish in the space ship moaning about the lost stones hurling into my
    tangled arms and sweet tones and lost brains and lofted
    sugar castles

  27. do lost observances even matter?
    do the quiet under oceans of living earths even FUCKING live?
    or is the modern world so real that the past is UNREAL?
    the swift natures of the being here and now and the being in old times when trumpets blayed from the oceanic detectives of the ocean teams with their lovely suits and … so on
    But I still love cocaine and booze and pot

    1. I want a laser cutter.

  28. I guess all these connections of times will travel above
    the pianos of times
    and when the old arms place their inspirations
    agile kisses their clouds of burning monsters
    into the fate or the hands and wings and imaginations
    of these new eternals

  29. Fuck power outages.

  30. FUCKING PROMISED LAND IS PIPER!!!!!!!!!!!!

    BETHESDA, you FAILED AT MAKING HER NOT BECOMING A FUCKING STOOGE YOU MOTHERFUCKING MERRY LITTLE CHRISTMAS OF ASSHOLES..

    make Piper say, I won’t follow you UNLESS I have a good reason..

    Problem is, modern coders are FUCKING RETARDS.
    THEY DO NOT KNOW HOW TO CODE FOR FUCKING REAL MINDS

  31. FUCK BETHESDA and their FUCKING over PIPER.

  32. I just want to eat cocaine and poems and fuck pussies which I will…
    No valve is worth the shittiness of bull galaxies when the lights smash from the ceiling
    upon our imaginations and fallen step back
    what is a step back?

    1. fucking step back is how we prod at reality.
      step back is how YOU punch reality. Are any of you real?
      is YOUR life real?

        1. I luv q because he is clouds on now and wow

    2. just want to eat cocaine and poems and fuck pussies

      Well, I mean, who doesn’t? There are 2 types of people. People who admit to wanting that. And people who lie about wanting to do that. Except the poems, of course.

  33. Court denies request to return revolver to owner

    A lawyer for Vance Lattime Sr., the owner of the firearm, filed a motion in Superior Court to have the gun returned, but the judge sided with prosecutors, who said it should remain in state’s evidence.

    Officials said the .38-caliber revolver was used by William Flynn to kill Smart in 1990. Vance Lattime Jr. was one of four teenagers convicted in connection with the killing.

    “His weapon was taken by his son, essentially stolen, and then used to kill a man,” Assistant Attorney General Jeffrey Strelzin said. “So because of that, the weapon went from something that was just a gun in someone’s home to a piece of evidence in a murder case, a murder weapon, so that’s why we’ve asked the court to retain it.”

    1. Sorry, I forgot the warning. There’s an auto-play video in that link.

  34. Buy gold NOW!

    1. Sure, but only if it comes wrapped in a slice of lemon.

    2. And guns.. lots of guns..

      1. Don’t forget the magazines and layer the ammo deep regardless of the cost now. At the point where you need to trade that AR or AK you will get a premium for it when it comes with 7 loaded magazines.

        Military caliber ammunition will be the new currency at that point.

  35. Did I not say that Eddie Munster would be a piece of shit as speaker? Why yes, yes I did.

    Eddie Munster continues what Orange dude started

  36. People are erthosphemes. fucking walking around and shit with bubbles and shit around them and crap, brop.
    Fucking people are erthospheres like goddamn egobubbles or ethospilons or wailing alley catgobbles or fucking cuntwagons.
    Fucking people are galacticfeldspars, or fucking egobobbles, or goddamn alley aliencunt armies
    Fucking people are goddamn transvestite closet dildomattress monarchies where King and Queen dildo penetrates all the holes of the dual fuckers on the Serta and shit and so on

  37. Like if the goddamn earth was lined with tons of horrible shitty melted cats and giraffes how we all gonna peel this shit back to get back into the heart of the earth and why do we think the earth likes US for saving it from angry piano players? Or infection and scattered butt fuckers? Fucking hyp or notGKC or the Lizard or q myt have an answer but i dowt it.

  38. I saw all these massively tall angry angels run toward my fucking self and I queried my bertrand russell ghost and he fliched his vaporous members and the tall angry people ran toward the networks

  39. If earth was a FUCKING guitar what strings should lay upon what continent and what galactic angel should strum this shit? Stevie Ray the dead angel with a massive hardon fucking all politic parties up the ass and strumming the entire goddamn earth with his angelic 7th angel power making agile cyborg cringe like the little gangsta lion.

  40. The disastrous lines of damages felled upon the fields of innocence and ravaging the lost rainbows
    outside the allies of sounds and distrastion and somewhere and some oftens and glitter spaces
    and tiny screeching rainbows, bro

  41. FUCKING PIPER… I HATE YOU BETHESDA!!!!!!! I fell in love with Piper and BETHESsaDA FUCKING FUCKED HER UP FOR ME…

    I HATE Your Beth bows… because… rainbows that emerge over Bethesda are dumb lights.

    Bethesda is an asshole that I would love to drive my Toyota into.

    JUST because the FUCKING coder that created Piper thought his Millenial mind had space for MANIPULATION of
    PIPER…

    FUCK YOU!!!!!!!!!!!

    Jesus FUCKING CHRIST

    If you make a game all the world’s dumb ass game developers… follow ENB… SHE will NOT FUCKING follow jackshit….

    What I love about this place? DO NOT PLEASE US! MAKE US THINK…well I am and do this shit forever because the genes of angels eat my brains bro

  42. OT: SF RENTAL RATES SKYROCKET on 12/16/15!
    SF is an expensive place to live, and brain-dead proggies see that as a difficulty. In the late ’70s, Di Fi (she was mayor at the time) pushed through a ‘limited’ rent control (post ’79 construction exempt), knowing that general rent control would kill construction. So her sop to the proggies has continued to expand with the resulting tremendous increase in rental costs. Owners are only displeased that quite a bit of the increases has to go to legal help; ‘fixers’ to make sure you can toss the bastards out.
    Given district elections, North Beach/Chinatown just elected a true imbecile who ran on a ‘moderate’ platform and as soon as he took office, dropped the mask and today demanded that ALL rental properties will henceforth be rent-controlled, offering developers trade-offs in height limits and zoning restrictions. As proof of his idiocy, he will then proclaim that his rent control measure ‘didn’t affect the rental market after it was approved!’
    This man has zero knowledge of how markets work. His “announcement” was sufficient to change the predicted rental income for new construction by, oh, 25%. It has to be, since charging more later is out the window.
    Those trade-offs will be taken, and that’s the last new rental property you’ll see that isn’t tax-payer funded.
    Personally, I thank Peskin for his Christmas gift; I will profit handsomely!

    1. BTW, the guy’s name is Peskin and here’s a link:
      “Supervisor Peskin Moves To Expand Rent Control To Newer Buildings”
      http://sfist.com/2015/12/16/mo…..lanned.php

Please to post comments

Comments are closed.